While there may have been ample times when you must have come across the word blockchain technology, did you ever wonder what is blockchain technology and what are its utilities?’ Besides being just a buzzword, blockchain technology has become a transformative force not only in the fintech sector but also in multiple other sectors that can benefit from decentralization, transparency, traceability of transactions, etc.
Blockchain technology was the by-product of Bitcoin – the first-ever and largest cryptocurrency in circulation. Or the first time, a pseudonymous personality by the name of Satoshi Nakamoto brought together cryptography, consensus, and decentralization into one technology. For anyone interested in exploring Satoshi’s idea of a blockchain, go and check out the whitepaper published in 2008.
Let’s explore what is blockchain technology and blockchain technology applications for you to have an introductory understanding of the innovative tech.
What Is Blockchain Technology?
Blockchain technology, explained in layman’s terms, is a network of computers that verifies and stores a distributed database of records. Any data or information once recorded on a blockchain cannot be changed, manipulated, or hacked. The participating computers on a blockchain network are called nodes. Each node has a duplicate copy of the entire database of the blockchain transactions, which it uses to verify transactions. The verified transactions are stored as blocks on a blockchain. To define blockchain technology in simple terms, it is a peer-to-peer network made up of nodes that stores transactional records in a distributed digital ledger.